EnerSys Announces Strategic Workforce Reduction as Part of Organizational Realignment to Drive Long-Term Growth and Operational Agility
EnerSys (NYSE: ENS), a globally recognized leader in stored energy solutions for industrial applications, has announced a significant organizational restructuring initiative designed to streamline its operations and enhance alignment with evolving market demands and long-term strategic priorities. As part of this initiative, the company will reduce its global non-production workforce by approximately 575 employees, which represents around 11% of this segment. The reductions will focus predominantly on corporate and management-level positions across various global locations.
This workforce reduction comes as part of a comprehensive transformation plan initiated under the company’s recently appointed leadership, aimed at recalibrating its organizational structure, improving cross-functional collaboration, and boosting efficiency across key business units. The plan follows a six-month evaluation phase during which the executive team, led by President and Chief Executive Officer Shawn O’Connell, engaged in detailed listening sessions, operational assessments, and scenario testing to determine the most effective path forward for sustainable growth and profitability.
“Today’s actions, while undoubtedly difficult, are essential for EnerSys to remain competitive, nimble, and responsive in the dynamic global energy marketplace,” stated Shawn O’Connell, President and CEO of EnerSys. “Over the past six months, we have actively listened to our employees, customers, and partners to better understand how we can evolve to serve their needs more effectively. Through this process, we’ve carefully examined how our organizational structure can better support our operational goals, empower our teams, and create greater value for both our customers and shareholders.”
O’Connell further emphasized that the workforce reduction does not reflect the performance or dedication of the affected employees. “EnerSys is powered by a talented and committed workforce, and this decision should in no way be viewed as a reflection on the contributions of those impacted. We deeply appreciate their service and are fully committed to treating every individual affected by this transition with dignity, respect, and support. Transition assistance, severance packages, and other support mechanisms are being put in place to help impacted employees through this process.”
The implementation of these organizational changes is expected to be largely complete by the end of the second quarter of EnerSys’ fiscal year 2026. The company has committed to ensuring that the restructuring process complies with all applicable local laws and employment regulations across its operational regions.
Financial Impact and Cost-Saving Measures
EnerSys anticipates that the workforce reductions, in combination with additional non-headcount-related cost optimization efforts, will generate approximately $80 million in annualized savings beginning in fiscal year 2026. This figure includes around $70 million in savings tied directly to operating expenses—an amount representing a reduction of more than 10% in comparison to the company’s fiscal year 2025 operating cost base.
In addition to these operational savings, the company projects an additional $10 million reduction in the cost of goods sold (COGS), attributed to process optimization, vendor and supply chain efficiencies, and structural improvements within manufacturing and logistics operations.
While these savings are significant, EnerSys also acknowledged that the restructuring process will involve certain one-time costs, primarily associated with employee separation packages, transition support services, and organizational changes. These one-time charges are projected to range between $15 million and $20 million, with the majority expected to be incurred in the second and third quarters of fiscal year 2026. The company is taking a phased approach to these charges to ensure financial stability and continuity of operations throughout the transition.
EnerSys expects to begin realizing tangible financial benefits from the restructuring initiative as early as the third quarter of fiscal year 2026, with total cost savings ramping up to the full annualized amount over time. In fiscal year 2026 alone, the company anticipates achieving between $30 million and $35 million in realized savings from these initiatives, with further impact to be reflected in fiscal year 2027 and beyond.
Strategic Realignment for Future Growth
This move marks a pivotal moment in EnerSys’ broader strategic journey, as the company seeks to modernize its operating model and better align its human capital resources with fast-changing market requirements and emerging growth opportunities. Under O’Connell’s leadership, EnerSys is pursuing a more agile and decentralized operational framework designed to accelerate innovation, enhance responsiveness to customer needs, and strengthen execution across global markets.
“As we look ahead, this restructuring represents not just a cost-saving measure, but a critical investment in the long-term competitiveness and resilience of our organization,” said O’Connell. “It is about rethinking how we work, where we invest, and how we can deploy our talent and resources more effectively to meet the demands of the energy storage market, which continues to evolve at a rapid pace.”
O’Connell also noted that EnerSys will continue to invest in high-growth segments of its business, including advanced battery technologies, renewable energy storage systems, and energy management software solutions, where the company sees strong demand and significant margin potential. The restructuring is intended to free up resources and leadership bandwidth to focus more intensively on these areas of opportunity.
Continued Communication and Transparency
EnerSys plans to provide more comprehensive details on the strategic restructuring initiative during its upcoming fiscal first quarter 2026 earnings report, which is scheduled for release after the market closes on August 6, 2025. The company will also host its customary earnings conference call the following day—August 7, 2025 at 9:00 a.m. Eastern Time—during which executives will elaborate on the organizational changes, provide updates on progress made, and offer forward-looking perspectives on the company’s growth strategy.
The earnings call will include commentary from CEO Shawn O’Connell and other members of the executive leadership team. Investors, analysts, and stakeholders are encouraged to attend the call or access a webcast replay, which will be available through the Investor Relations section of the EnerSys website.
